Impact of Micro-finance Services on Poverty Alleviation at the Household Level
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Date
2010-10Author
Karuri, Solomon W
Type
ThesisLanguage
enMetadata
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Microfinance programs are increasingly publicized as one of the most successful tools for
development with the ability to positively affect its participant’s economic and social status.
Measuring this impact can be difficult, and the programs have been criticized for not reaching
the poorest of the poor. Various approaches to advance credit for micro and small enterprises
have been tried in Kenya by different institutions with varying degrees of success or failure.
Major approaches include: minimalist versus integrated approaches; group-based lending versus
lending to individuals; village banking and linkage programs. Microfinance is becoming one of
the most popular tools for development. It is important to understand the effects of microfinance
programs are participants, but also its possible effects at reducing poverty and leading
development.
The objective of this study was to evaluate the effects of microfinance programmes on poverty
alleviation at the household level. This research study employed a survey research method to
achieve the set objectives. The population of the study consisted of beneficiary households of
microfinance programmes in Kisumu. This research study used purposive sampling to select
households to be studied. A sample of 50 households who have benefited from microfinance
programmes was selected and another 50 households who have not benefited from microfinance
programmes were picked for comparison. The primary data was collected using structured
questions and unstructured questions. Descriptive statistics such as means, standard deviation
and frequency distribution were used to analyze the data. Data presentation was done by the use
of pie charts, bar charts and graphs, percentages and frequency tables.
From the findings of the study the study recommends that MFIs should ensure speedy processing
of loans to customers and increase monitoring of income generating activities to see their
progress and challenges. MFIs should ensure that they reach out many rural poor and increase
awareness of their products to community level and also provide soft loans for their customers.
MFIs should introduce entrepreneurial training in the rural-urban areas to enlighten people on
microfinance programmes.
Citation
MBA ThesisSponsorhip
University of NairobiPublisher
University of Nairobi School of Business, University of Nairobi